The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-06-23
GOVERNMENTAL.
What is Going on in the State De-
Departments.
An Epitome of What Was
Learned at the Capitol
Yesterday.

following ruling:
Section "a, acts of 1885, provides the
manner ia which the shares of national
banks shall be taxed, and also provides
the manner in which such shares shall be
rendered for taxation.
This section is in strict conformity to
the acts of congress granting to states the
right to tax said shares, and an assess
ment of said shares made otherwise than
is provided in said section is not valid
and legal assessment.
Section 5219, revised statutes of the
United States, after granting to states the
right to tax said shares, expressly provides
tn at "the legislature of each state
may determine and direct the manner and
place of taxing all the shares of national
banking associations located within the
state" In pursuance of this express
authority by congress, the legislature of
this state enacted said section "a. The said
section 5219 places two restrictions upon
states as to the taxation of said shares,
that is that they shall not be taxed at
greater rate than is assessed upon other
moneyed capital in the hands of indi-
vidual citizens. of the state; and that the
shares of any national banking association
owned by non-rosidents of any state shall
be taxed in the city or town where the
bank is located and not elsewhere. Mr..
Justice Matthews, of the Supreme Court
of the United States, in an opinion rem
dered April 4th 1887, in the case of the
Mercantile National bank of New York VS..
the mayor, aldermen, ETC., of the city of
New York." upholds and sustains this
mode of assessment of national bank
shares by states, as being in conformity to
the acts of congress.
1t is we'll settled that the said section "a,
acts of 1855, is Valid enactment
National banks in this state shonld con.
form to said section "a, in rendering
shares, etc., for taxation, and so far as l
am informed they all comply strictly with
some. except the two banks mentioned by
you, and doing business in the town of
-. The said section "a; requires no
comment or explanation by me, as 1t is
very plain and easily understood; it works
no hardship or injustice upon national
banks. For refusing to comply with the
provisions of this section, the officers
of any bank SO refusing can be
tried and punished under our penal code;
and in support of this see Downes VS..
State % ct. of APP. In this case fine OF
$1,000 was adjudged against -, the
president of National bank in this state,
for refusing to furnish the assessor of the
county a sworn statement showing the
number of shares, names of shareholders,
etc. l refer to the above authorities as
sustaining the mode adopted by this state
for the assessment of National banks.
The renditions made by - banks of
-, IN the manner described, are not
legal and valid renditions, and should not
be accepted. A rendition by national
bank of 800 shares, capital stock 500
each at 6625 cents, total capital stock
$33,333.33," is not only not in compliance
with the laws of this state, but in viola
ton of the acts of congress. AS states
have no authority to tax the capital stock
of national banks, such authority extends
solely and entirely to taxation OF the
shares of said banks, and it must appear
upon the tax rolls that the tax Is directly
levied upon said shares. l do not know
under what law or authority said banks
propose to render their shares at only
662a cents, as the reasons are not stated
for such reduction in value OF same. l
presume that the reduction is claimed by
reason of the fact that the portion of the
capital stock by which the rendition Is re-
duced is invested in United States bonds,
which are exempt from taxation. Ii so,
the reduction cannot be permitted, as the
tax is not upon the capital stock but upon
the shares; it is competent for the state
to tax the shares of national bank STOCK
held by individuals, Notwithstanding the
capital of the bank is invested IN bonds
of the United States. ivan Allen VS.. AS
SCISSORS, WAL, 573) National bank
shares must be rendered at their actual
cash value, and 80 assessed; that's, II sucf
shares are worth each $3.50, II. g. $5C
above par value) for each 500 share they
should be assessed at $3.50 each; II
the "surplus" or undivided
profits of national banks is Sc
cured; it is by reason of such surplus" OF
undivided profits that the value OF the
shares is enhanced.
Shareholders of national bank stock are
4 entitled to reduce their assessment OF
same by the amount of their lnceoted-
ness. as such shares must be taxed In the
same manner and at no greater rate than
other moneyed capital in the hands OF
individuals.
A separate rendition and assessment OF
surplus or undivided profits cannot be
made. but must be included in the val
uatlOQ OF Un6 s1dTeS, do dbONo o'"'SN'
Treasury receipts were about Slo'ooo
, yesterday.
The secretary of state department wa;
engaged with some notarial appointments
who refuse to pay the so and give the
$1,000 bond in order to qualify.
Mr.. F. NJ. Davis, collector of Wichitf
county, and Mr.. Neal Robinson, collector
of Fayette county, were in the city yes
terday. and settled with the comptroller
The following is a special ruling OF tht
~ educational department.; A.
" By the power vested by law In t tt
superintendent of public instruction tic
issue instructions and regulations binding
on all officers and teachers; l. e., in cases
that may arise in which the law has mad'
no provision, and where necessity re-
quires some rule" hereby authorize tn
school officers of any organized county u
which unorganized counties are attached
for judicial purposes, to make all neces
sary arrangements for the organ
cation and support of such fret
schools as are needed in the unorganlzee'
county or counties attached to SAT-
county for Judicial purposes ..
The following scholastic aostract